Tether’s Gold Push Adds a New Demand Floor for XAU Price—Could It Break the Market?

Tether, the largest stablecoin issuer, is significantly increasing its physical gold holdings, aiming for 10% to 15% of its investment portfolio, which currently implies several billion dollars in incremental purchases. The company already holds approximately 130-140 metric tons of gold, representing about 12-13% of its broader holdings, and continues to buy one to two tons weekly. While this demand (roughly 1-2% of global yearly supply) is too small to dominate the market, it matters at the margin by drawing from existing above-ground stocks, tightening physical liquidity, and making prices more sensitive to incremental buyers. Tether's predictable, cumulative buying reinforces price floors, offering supportive rather than explosive price action. Furthermore, CEO Paolo Ardoino framing gold as a central bank-style reserve asset reinforces the narrative of gold as a hedge, potentially amplifying price moves beyond direct flows. However, macro drivers like Fed policy and dollar strength remain decisive, meaning Tether's push acts as a stabilizer within an already bullish backdrop, not a market breaker.

(Source：BeInCrypto)